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🇦🇪 UAE

SGB for NRIs in UAE

Understanding Sovereign Gold Bond rules for Indians in UAE/Dubai

NRIs Cannot Invest in SGBs

As per FEMA (Foreign Exchange Management Act) regulations, Non-Resident Indians are NOT eligible to purchase Sovereign Gold Bonds, whether through primary market or secondary market (stock exchanges).

**Can NRIs in UAE invest in Sovereign Gold Bonds?**

**No**. Despite the large Indian diaspora in UAE and Dubai, NRIs are NOT eligible to invest in Sovereign Gold Bonds under FEMA regulations.

**UAE-specific considerations:** - UAE has no income tax, but India taxes NRI income from Indian sources - Interest from SGBs (if held from resident status) is taxable in India - Gold is highly popular in UAE with competitive physical gold prices

**Alternative:** Consider physical gold purchases in Dubai (among the cheapest globally) or Indian Gold ETFs through NRI demat accounts.

Key Points for NRIs in UAE

NRIs in UAE CANNOT purchase SGBs under FEMA regulations

Dubai offers competitive physical gold prices as alternative

Indian Gold ETFs are available through NRI demat accounts

UAE has no income tax, but Indian-source income is taxable in India

Gold purchased in UAE can be brought to India with customs duties

Alternative Gold Investments for NRIs

Physical Gold in Dubai

Available

Gold souks and retailers offer competitive prices

No GST, competitive making charges, immediate possession

Indian Gold ETFs

Available

Gold ETFs on NSE/BSE through NRI demat account

Allowed for NRIs, INR denominated

UAE Gold ETFs/Funds

Available

Gold investment products in UAE market

AED denominated, local investment

Sovereign Gold Bonds

Not Allowed

Government of India gold bonds

NOT allowed for NRIs under FEMA

Tax Implications for UAE Residents

  • UAE has no personal income tax
  • Interest income from India is taxable in India for NRIs
  • DTAA between India and UAE may help avoid double taxation
  • Capital gains on Indian investments follow Indian tax laws
  • Consult a CA familiar with India-UAE tax matters

Important Disclaimer

**IMPORTANT DISCLAIMER:** 1. **NRIs CANNOT invest in Sovereign Gold Bonds (SGBs)** as per FEMA (Foreign Exchange Management Act) regulations. This applies to both primary market (RBI issues) and secondary market (stock exchanges). 2. If you became an NRI after purchasing SGBs as a resident Indian, you may continue to hold them until maturity but should consult a tax professional regarding implications. 3. This information is for educational purposes only and does not constitute legal, tax, or investment advice. NRI regulations are complex and vary by country of residence. 4. Please consult a qualified CA, tax advisor, or legal professional familiar with FEMA regulations and your country's tax laws before making any financial decisions. 5. Information provided is based on our understanding as of 2026 and may be subject to change.

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Frequently Asked Questions

FEMA regulations prohibit all NRIs from investing in SGBs, regardless of country of residence. This is to ensure the scheme benefits resident Indians and manage forex flows.
For NRIs, physical gold in Dubai is a viable alternative. Dubai offers competitive prices and no GST. However, you lose the 2.5% interest that SGBs provide.
Yes, NRIs can invest in Indian Gold ETFs through an NRI demat account (linked to NRE/NRO). This is allowed under FEMA, unlike SGBs.

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